Property & Companies
JJH1969
Registered Posts: 110 Epic contributor 🐘
Does anyone know what the advantages are of setting up a limited company for your property business and/or what are the disadvantages of transferring the property to a company at a later date if indeed this is possible?
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Comments
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Stamp Duty is the first thing that springs to mind: payable on transfers between company and individual.
Company will have to prepare full statutory accounts and CT return; individual just has to complete land and property pages on tax return.
Individual has CGT allowances on sale of property, company doesn't. But company may pay a lower rate of tax if the individual is a higher rate taxpayer.0 -
Thanks for this - how much would you charge for setting up a company?0
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Loans and mortgages are more difficult for a limited company.0
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In what way?0
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Companies often don't have an established credit rating and if it's an owner-managed company it's likely there is only a small reserve as the reserves have been taken out in dividends which in my experience banks don't like very much.0
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